Vera Bradley Case Study Essay

4661 Words Jul 26th, 2016 19 Pages
GBA 490 – 007
23 September 2015
Vera Bradley Case

Table of Contents
Page Numbers
Executive Summary……………………….…………………………………………….……………………………..3-6
Appendix A: Dominant Economic Characteristics…………………………………...…………………..6-7
Appendix B: PESTEL Analysis……………………………………………………………………….……..……….7-9
Appendix C: Five Forces Analysis……………………….…………………….………….……..…………….9-11
Appendix D: Industry Driving Forces………….………..………………..……………..……....………..11-12
Appendix E: Key Success Factors…..………………………………………………….………...............12-13
Appendix F: Financial Analysis..………………………………………….……..……..…….………………13-16
Appendix G: Resources and Capabilities Analysis (VRIN Test)…….…..…………….…………16-17
Appendix H: Weighted Competitive Strength
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Since this segment of the industry was easily influenced by economic conditions, the threat of substitutes was strong (Appendix C).
In 1982 Barbara Bradley Baekgaard and Patricia Miller, Vera Bradley’s co-CEOs, saw an opportunity for vibrant and trendy luggage, and started Vera Bradley. The company grew quickly in the 2000s as their products were viewed as unique and allowed consumers to express their style. In order to be competitive in the market as the number of rivals in the industry grew; Vera Bradley had to turn its attention to its key success factors (Appendix E). The company also had to see which factors would create a sustainable competitive advantage (Appendix G). These factors, including multi-channel distribution, brand image, and product variety, contributed to the overall worth of the company, which in turn boosted its reputation. Vera Bradley had been having troubles in the recent years. Its current strategy was proving to be ineffective (Appendix J). Its growth had come to a halt, and revenues slipped by 15%. The compound annual growth rate for Vera Bradley between 2013-2014 was negative, which showed that the company was having some strategic issues (Appendix F). Compared to its competition, Vera Bradley was ranked lower than all rivals in the market (Appendix H). As the industry grew larger and more rivals emerged, Vera Bradley had to make changes to their strategy. The

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